Observer summarises DMS state of play

There’s trouble brewing under the surface of the digital music services and The Observer summarises the state of play so far. The flashpoints are the rates payable to publishers – they want almost double the rate (6.5%) applicable to CDs and new bands are turning away from the old model of labels acting as the intermediary between them and the public. However, digital music sales are on the up, much higher than estimated and according to some could well signal the tipping point for CD sales – a rise before a terminal decline.